Total Produce buys stake in Dole Food

01 February 2018, 09:18

Source - SMW

Total Produce, a fresh produce company, has entered into a binding agreement to acquire a 45% equity stake in Dole Food Company for $300 million.
Dole is one of the world's largest fresh produce companies and a producer and marketer of high quality fresh fruit and vegetables.
For the 12 months ended 7 October 2017, Dole generated revenue and adjusted EBITDA of $4,455 million and $237 million, respectively.
The transaction consideration for the 45% interest implies a Dole enterprise value of approximately $2 billion and 9x Dole adjusted EBITDA.
Total Produce has fully committed acquisition financing in place to secure funding of the Transaction. The transaction is expected to generate low double digit adjusted earnings per share accretion for Total Produce in the first full fiscal year post closing.
Carl McCann, chairman of Total Produce, said: "I believe that this investment by Total Produce in Dole is the single most positive step in our company's history. It places Total Produce at the forefront of our industry, and we anticipate it will create significant additional value for shareholders in the years ahead."
At 9:18am: (LON:TOT) Total Produce PLC share price was +9.5p at 217.5p

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